Bill > HF812

This bill modifies individual income tax rates in Minnesota by adjusting the income tax brackets and rates for different filing statuses (married filing jointly, unmarried individuals, and heads of household). The bill increases the income thresholds for each tax rate bracket, effectively providing some tax relief by allowing more income to be taxed at lower rates. For married joint filers, the first tax bracket's threshold increases from $38,770 to $47,620, and subsequent bracket thresholds are also raised. Similar increases are made for unmarried individuals and heads of household. The bill also updates the base year for annual inflation adjustments from 2019 to 2025, which means tax brackets will be automatically adjusted for inflation starting in the 2025 tax year. These changes are designed to prevent "bracket creep," where inflation can push taxpayers into higher tax brackets without a real increase in purchasing power. The modifications will be effective for taxable years beginning after December 31, 2024, and 2025, respectively, giving taxpayers potential tax savings in the upcoming years.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0812&ssn=0&y=2025